Dragni Dragnev

Will Cocrystal Pharma Inc. (OTCBB:COCP) Return To Prominence?

by Dragni Dragnev March 23, 2016

Cocrystal Pharma Inc. (OTCBB:COCP, COCP message board) managed a nice 13.60% jump yesterday, landing right above the $0.7 mark – but will it retain its gains?

Well, it's difficult to say. Once you start doing due diligence on the company and reading into its reports, some interesting figures start popping up.

  • Cash and cash equivalents - $9.2 million
  • Total current assets – $9.9 million
  • Total current liabilities – $6.7 million

Without a doubt, those figures are pretty impressive for an OTC Markets company. Unfortunately, what follows don't present COCP in quite so flattering of a manner.

  • Revenues for 2015 - $78 THOUSAND
  • Net cash used in operating activities for 2015 - $10.3 million
  • Net loss for 2015 – $50 million

The good news are that these numbers are quite recent – so they give investors a pretty good idea of what's going on. Additionally, COCP seems to have quite a bit of cash on hand. The bad news is that the company has increased its spending and its efforts don't seem to translate into tangible commercial results yet.

It is also a bit suspicious when a company, in its official filings, can only give an approximate number of shares that it currently has outstanding. This poses some interesting questions. Like - what could be the reason for not disclosing an exact number? Is COCP incapable or unwilling to disclose the exact number?

The good news is that in spite of being a rough approximation, the number that the company has provided is good enough to give investors an idea of how much dilution has been going on in the last quarter of 2015. And the answer to that question seems to be – not much. 10 million issued shares are nothing to sneer at, but they're also nothing compared to the 579 MILLION shares that the company issued between Q2 2014 and Q2 2015.

In conclusion – COCP has some obvious upsides, but that doesn't mean that investors wanting to commit to its stock can relax, because it has many crippling shortcomings as well. And since there's no way to tell which aspect of the company's current situation will be pushing the ticker up or down at any given time, our best advice is – be diligent and vigilant.


Comments 0

Type the characters that you see in the box (5 characters).